The province has announced increased infrastructure funding for the 2025-26 fiscal year. This funding will come through the Local Government Fiscal Framework (LGFF), introduced in Budget 2024.
According to the province, Airdrie's capital funding allocation 2024 is $8,022,724, which will increase to $9,323,778 in 2025.
"Amounts show what local governments will be entitled to in the specified years based on the Local Government Fiscal Framework Act and the approved allocation formula, subject to Ministerial commitments," the province explained. The 2024 LGFF allocations are primarily based on 2021 data, while 2025 allocations rely mainly on 2022 data.
The LGFF replaces the Municipal Sustainability Initiative (MSI) and provides a predictable approach to municipal funding by linking allocations directly to provincial revenues.
Under this model, municipal funding rises by the same percentage as provincial revenues. For the 2025-26 fiscal year, municipalities will receive over $820 million, marking an increase of more than 13 percent from the 2024 budget.
Other towns surrounding Airdrie's LGFF funding include Crossfield, which will receive $554,618 in 2024 and $618,196 in 2025. Carstairs is set to receive $633,155 in 2024 and $711,202 in 2025.
Beiseker will receive $257,413 this year, increasing to $274,482 in 2025. Rocky View County will receive $6,463,565 in 2024 and $6,901,956 in 2025.
The province also noted that the 2024 LGFF amounts include a one-time transitional top-up for nine local governments to prevent any year-over-year decreases from the funding allocated under the Municipal Sustainability Initiative in 2023.
The total top-up funding is $2,170,671, with Rocky View County receiving $482,780.
The LGFF consists of two components: capital funding and operating funding. Capital funding is legislated through the Local Government Fiscal Framework Act and allocated to eligible local governments based on a formula. Municipalities can use these funds for infrastructure priorities within program rules.
While allocation-based, operating funding is not legislated and supports capacity-building activities to improve municipal efficiency, services, and planning.
The framework supports infrastructure projects across cities, towns, villages, summer villages, municipal districts, counties, and Metis Settlements throughout Alberta. Additionally, the 2024 budget allocated $60 million in operating funding for communities outside Calgary and Edmonton.
The Local Government Fiscal Framework Act passed in December 2019, includes a revenue index factor that adjusts future funding based on changes in provincial revenues from three years earlier. The increased funding for the 2025 budget reflects a rise in provincial revenues for the 2022-2023 fiscal year.
Alberta’s municipalities received $722 million in LGFF funding in the previous fiscal year, consistent with the average annual amount allocated since Budget 2021.
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